A few days ago, the ministry of commerce and other eight departments jointly issued the notice on further improving the pilot work of supply chain innovation and application, aiming to give full play to the important role of supply chain innovation and application in promoting the resumption of work and production, stabilizing the global supply chain and helping to alleviate poverty.

CAI jin, vice President of the China federation of logistics and purchasing, said that after the outbreak of covid-19, both in China and some other countries, the supply chain and industrial chain imbalance, broken, blocked and dormant. Whether it is dealing with the epidemic, ensuring people's livelihood, or promoting the resumption of work and production, the first priority is to restore and stabilize the supply chain and industrial chain.

"The supply chain cannot be separated from finance. We should not separate finance from the supply chain. Finance is an integral part of the supply chain, not an external service." CAI jin said that where the supply chain is short of funds, the financial link into the supply chain system, the entire supply chain together to provide financial supply, the entire supply chain can be stable and smooth.

CAI believes that financial institutions must be involved in the supply chain when doing supply chain finance. In fact, financial institutions are a credit hub in the supply chain. They grasp the credit and provide the financial coordination mechanism of the supply chain in the supply chain. The key to supply chain finance is to form a credit mechanism, not a simple collateral guarantee.

"Supply chain finance should be digitized through digital innovation to form digitized finance." 'whoever has the data has the financial function,' Mr. CAI said. Through data, the scattered and fragmented credit will be integrated to form financial data, digital currency will be formed, so that the current data resources into data capital.

In the future, supply chain finance will no longer provide money, but data. In the process, new financial institutions will emerge to engage in supply chain finance. "Of course, in the development process of supply chain finance, traditional financial institutions also need to be transformed. Some emerging data-based financial institutions are more capable of providing supply chain financial services than traditional institutions." Cai Jin said.

Source: Oriental fortune